Briq Raises $8M at $150M Valuation Amidst Market Challenges
Briq, a startup leveraging artificial intelligence to automate financial workflows in the construction industry, has successfully raised $8 million in an extension round, maintaining its valuation at $150 million. This funding round comes at a time when the startup environment is notably challenging, with many companies struggling to secure capital or facing reduced valuations.
The recent funding round for Briq, announced in an interview with TechCrunch by CEO and co-founder Bassem Hamdy, marks a strategic approach amidst a fluctuating market. Hamdy mentioned that the company chose to "wait out the market," opting for a smaller funding round with less dilution, rather than pursuing a more substantial Series C round. This decision reflects a cautious yet optimistic stance in a period when capital acquisition has become increasingly stringent for startups.
Tiger Global Management, which led Briq's $30 million Series B financing in June 2021, reinforced its confidence in Briq by participating in the extension. Other contributors to the round included MetaProp, Blackhorn, Eniac, and the multi-billion dollar German firm Nemetschek. Aaron Block, managing partner at MetaProp, is set to join Briq’s board, indicating a deepening relationship between the investors and the startup.
Despite the current economic climate, Briq reported a 40% growth in its annual recurring revenue (ARR) in 2023 compared to 2022. However, the company has also implemented a cost reduction strategy, leading to a 45% reduction in its workforce, downsizing to 138 employees by the end of 2023.
Briq's customer base includes companies like Choate Construction, Catamount Construction, Fessler and Bowman, and Elder Construction. Since its inception in 2018 by Hamdy and Wall Street veteran Ron Goldshmidt, Briq has pioneered the integration of AI in financial processes specific to the construction industry.
The company's core technology revolves around a library of over 200 generative automation bots, trained to perform tasks typically handled manually in financial workflows. These bots are deployed across two of Briq's products: Briq AutoPilot and Briq CoPilot. Briq AutoPilot automates up to 80% of business processes like accounts payable, receivable, and payroll processing. On the other hand, Briq CoPilot focuses on automating financial forecasting processes and introducing risk detection measures to help avoid financial pitfalls in construction projects.
Hamdy compares Briq’s technology to an autopilot for accounting departments, emphasizing its ability to address labor shortages in construction by substituting manual labor with digital solutions. To date, Briq has automated over a million tasks in the construction industry, claiming to enhance profit margins and reduce overhead costs for its clients.
MetaProp’s Aaron Block recognizes Briq’s unique application of robotic technology in construction’s back office, streamlining cost management, payroll processing, and other crucial yet often overlooked tasks.
Looking forward, Briq plans to expand beyond North American markets, with Hamdy expressing particular interest in the Middle East, Asia, and non-English speaking parts of Europe. Additionally, Briq anticipates incorporating conversational AI for financial transactions in 2024, further advancing its innovative technological solutions in the construction industry.
